Local Government Act 2003

Section 106

SCHEDULE 5 Transfer schemes: further provision

Contents of transfer scheme

1 (1) The property, rights and liabilities which may be transferred by a transfer scheme under section 106 (“transfer scheme”) include property, rights and liabilities that would not otherwise be capable of being transferred or assigned.

(2) The transfers authorised by sub-paragraph (1) include transfers which are to take effect as if there were no such contravention, liability or interference with any interest or right as there would otherwise be by reason of any provision having effect (whether under any enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled to the property or right, or subject to the liability, in question.

2 A transfer scheme may define the property, rights and liabilities to be transferred by specifying or describing them or by referring to all of the property, rights and liabilities comprised in a specified part of the undertaking of the transferor (or partly in one way and partly in the other).

3 A transfer scheme may contain provision—

(a) for the creation, in relation to property which the scheme transfers, of an interest in or right over the property in favour of the transferor,

(b) for the creation in favour of the Service of an interest in or right over property retained by the transferor,

(c) for the creation of any rights or liabilities as between the transferor and the Service,

(d) for any rights or liabilities specified or described in the scheme to be, or to be to any extent, enforceable by or against the transferor or the Service, or

(e) for imposing on the transferor and the Service an obligation to enter into written agreements with, or execute other instruments in favour of, each other.

4 A transfer scheme may include such supplemental, incidental, consequential and transitional provision as the Secretary of State considers appropriate.

Effect of transfers

5 (1) Anything done by or in relation to the transferor for the purpose of or in connection with anything transferred which is in effect immediately before it is transferred shall be treated as if done by or in relation to the Service.

(2) A transfer does not affect the validity of anything done by or in relation to the transferor before the transfer takes effect.

6 There may be continued by or in relation to the Service anything (including legal proceedings) relating to anything transferred which is in the process of being done by or in relation to the transferor immediately before it is transferred.

7 The Service shall be substituted for the transferor in any document relating to anything transferred.

Continuity of employment, etc of transferred employees

8 Where an employee of a valuation tribunal becomes an employee of the Service under a transfer scheme—

(a) for the purposes of Part 11 of the Employment Rights Act 1996 (c. 18) (redundancy payments etc), he shall not be regarded as having been dismissed by virtue of the transfer, and

(b) for the purposes of that Act, his period of employment with the valuation tribunal counts as a period of employment with the Service and the change of employer does not break the continuity of his employment.

Modification of transfer scheme after appointed day

9 (1) If, after the day appointed by a transfer scheme for the coming into force of the scheme, the transferor and the Service so agree in writing, the scheme shall for all purposes be deemed to have come into force on that day with such modifications as may be agreed.

(2) An agreement under this paragraph may, in connection with giving effect to modifications to the scheme, include supplemental, incidental, consequential and transitional provision.

Provision of information to Secretary of State

10 A valuation tribunal shall provide the Secretary of State with such information and other assistance as he may reasonably require for the purposes of or in connection with the making of a transfer scheme.

Consultation

11 Before making a transfer scheme relating to the property, rights or liabilities of a valuation tribunal, the Secretary of State shall consult the valuation tribunal concerned.

Stamp duty

12 (1) Stamp duty shall not be chargeable on—

(a) a transfer scheme, or

(b) an instrument or agreement which is certified to the Commissioners of Inland Revenue by the Secretary of State as made in pursuance of a transfer scheme.

(2) No such scheme, and no instrument or agreement which is certified as mentioned in sub-paragraph (1)(b), shall be taken to be duly stamped unless—

(a) it has, in accordance with section 12 of the Stamp Act 1891 (c. 39), been stamped with a particular stamp denoting that it is not chargeable with any duty or that it is duly stamped, or

(b) it is stamped with the duty to which it would be liable, apart from this paragraph.

(3) Section 12 of the Finance Act 1895 (c. 16) shall not operate to require—

(a) the delivery to the Inland Revenue of a copy of this Act, or

(b) the payment of stamp duty under that section on any copy of this Act,

and shall not apply in relation to any instrument on which, by virtue of sub-paragraph (1), stamp duty is not chargeable.